Monday, February 11, 2008

Win-Win Negotiation

Win-Win Negotiation - Finding a fair compromise

Negotiation skills help you to resolve situations where what you want conflicts with what someone else wants. The aim of negotiation is to explore the situation to find a solution that is acceptable to both parties.

There are different styles of negotiation, depending on circumstances. Where you do not expect to deal with people ever again and you do not need their goodwill, then it may be appropriate to ‘play hardball’, seeking to win a negotiation while the other person loses out. Many people go through this when they buy or sell a house – this is why house-buying can be such a confrontational and unpleasant experience. Similarly, where there is a great deal at stake in a negotiation (for example, in large sales negotiations), then it may be appropriate to prepare in detail and use a certain amount of subtle gamesmanship to gain advantage.

Both of these approaches are usually wrong for resolving disputes with people you have an ongoing relationship with: if one person plays hardball, then this disadvantages the other person – this may, quite fairly, lead to reprisal later. Similarly, using tricks and manipulation during a negotiation can severely undermine trust and damage teamwork. While a manipulative person may not get caught out if negotiation is infrequent, this is not the case when people work together on a frequent basis. Honesty and openness are the best policies in this case.

Preparing for a successful negotiation…Depending on the scale of the disagreement, a level of preparation may be appropriate for conducting a successful negotiation.

For small disagreements, excessive preparation can be counter-productive because it takes time that is better used elsewhere. It can also be seen as manipulative because just as it strengthens your position, it can weaken the other person’s.

If a major disagreement needs to be resolved, then it can be worth preparing thoroughly. Think through the following points before you start negotiating:

Goals: what do you want to get out of the negotiation? What do you expect the other person to want?

Trades: What do you and the other person have that you can trade? What do you each have that the other might want? What might you each be prepared to give away?

Alternatives: if you don’t reach agreement with the other person, what alternatives do you have? Are these good or bad? How much does it matter if you do not reach agreement? Does failure to reach an agreement cut you out of future opportunities? What alternatives might the other person have?

Relationships: what is the history of the relationship? Could or should this history impact the negotiation? Will there be any hidden issues that may influence the negotiation? How will you handle these?

‘Expected outcomes’: what outcome will people be expecting from this negotiation? What has the outcome been in the past, and what precedents have been set?

The consequences: what are the consequences for you of winning or losing this negotiation? What are the consequences for the other person?

Power: who has what power in the relationship? Who controls resources? Who stands to lose the most if agreement isn’t reached? What power does the other person have to deliver what you hope for?

Possible solutions: based on all of the considerations, what possible compromises might there be?

Style is critical…

For a negotiation to be 'win-win', both parties should feel positive about the situation when the negotiation is concluded. This helps to maintain a good working relationship afterwards. This governs the style of the negotiation – histrionics and displays of emotion are clearly inappropriate because they undermine the rational basis of the negotiation and because they bring a manipulative aspect to them.

Despite this, emotion can be an important subject of discussion because people's emotional needs must fairly be met. If emotion is not discussed where it needs to be, then the agreement reached can be unsatisfactory and temporary. Be as detached as possible when discussing your own emotions – perhaps discuss them as if they belong to someone else.

Negotiating successfully…

The negotiation itself is a careful exploration of your position and the other person’s position, with the goal of finding a mutually acceptable compromise that gives you both as much of what you want as possible. People's positions are rarely as fundamentally opposed as they may initially appear - the other person may quite often have very different goals from the ones you expect!

In an ideal situation, you will find that the other person wants what you are prepared to trade, and that you are prepared to give what the other person wants.

If this is not the case and one person must give way, then it is fair for this person to try to negotiate some form of compensation for doing so – the scale of this compensation will often depend on the many of the factors we discussed above. Ultimately, both sides should feel comfortable with the final solution if the agreement is to be considered win-win.

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